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Interested in a short sale property located in South Florida.

It came up on my radar late in the game, listed for 160K in 1/2011, three months later adjusted to 145K, since then a bunch of listing removed, listed again for 145K.

I went and looked at the property, looks pretty good, sellers obviously over improved the property. Put in brand new kitchen, hard wood flooring, hurricane impact windows, reclaimed chicago brick pavers...even all the doors have $75 door knobs on it. They put way too much into it and those don't translate into equal added value. But yes it is VERY nice.

When I looked at it there is already a contract on the place. The listing agent told my agent she has 7 other offers waiting in line. However since I am a cash buyer I would be first in the backup list should the contract falls apart. She urged me to submit a backup offer if I want it. Bank already approved it at 145K.

I started to do some numbers and looked at some comps. Take the renovations out of the equation first, as I am sure this is why there are other offers, the wives of those buyers OOOs and WAAs on the updated kitchen. But no matter how I look at it, it comes in at 115K-125K. No way more than 125K.

Now if you add in the renovations, which is subjective. As someone who is going to buy it as a rental investment, it is not worth much to me, worth some, but not nearly as much as someone who will live in it. I am willing to throw in another 10K for the improvements, may be 135K will work - marginal deal, but may be.

Bank approved number is 145K, with a contract in place, 7 other offers in the pipeline. I called my buyer agent and asked him to get another assessment by talking to the listing agent. Here is what he found out. All 8 offers are contingent on a loan approval. The listing agent is worried that those loan would not be approved because the house won't comp at 145K (this is the second time this is happening). She thinks the contract would fall apart and if I can make a cash offer at 145K it's mine.

I have no intention to make an offer at 145K. If it won't comp than the deal falls apart and it goes back on the market. They may find a cash buyer at 145K or their existing buyer may pay more down to reduce the loan amount to an acceptable threshold to the lender. I don't want to be an insurance policy for the listing agent.

However, I am willing to put a 132K cash offer with a 50% EMD on the table, if the deal falls apart, the bank can choose between a sure thing or seven other loan contingencies that may have the same end results. What is the chance the bank will say since the house doesn't appraise now for the second time, take the sure thing cash offer, or will they keep going from offer to offer and risk the financing contingency not met for each one.

I know there is no way to read the mind of the bank, but I am wondering, if I should even bother?

Thanks for any comments and thoughts.